Eskom reduces top executive structure from 21 to 9

Johannesburg - The process to rationalise state-owned power utility Eskom's top executive structure has been completed, reducing the number of top executives from 21 to nine, group CEO Phakamani Hadebe said on Sunday.

"Following an extensive consultation with its executive management that started on 7 November 2018 and approval of a new executive structure by the board, Eskom today [Sunday] announced that the process has now been concluded, setting a new course for the organisation to be cost-effective, efficient, and sustainable," he said.

"This was not an easy process and I appreciate the patience and support of all those involved as we worked to conclude matters as efficiently as possible. We have managed to reduce the number of F-band [executive] positions from a total of 21 to nine by way of regrading or combining roles.

"The new structure, along with our strategy, sets us on a path towards stability, and with an executive team that is refocused on improving operational efficiencies and reducing costs to improve profitability and drive the economy forward,” Hadebe said.

The group executives for generation, distribution, transmission, and group capital now reflected full accountability for profit and loss (P&L) within each of the core businesses, which was a key strategic imperative to drive Eskom’s return to profitability, he said.

The new structure had reduced the number of direct reports for the group CEO to 10 in the short-term, which would drop to eight when IT and procurement were "relinked back to" the chief financial officer (CFO) in the foreseeable future. In addition, all senior general manager roles, "which were a person to holder roles", had been eliminated.

These 10 direct reports, comprising of operations, finance and services, human resources, legal and compliance, corporate strategy and support, audit and forensic, corporate affairs, group company secretariat, IT, and procurement would report directly to the group CEO. Distribution, group capital, transmission, risk and sustainability, Eskom enterprises and ERI, and Africa strategy would report to the chief operations officer (COO), Hadebe said.